Richardson, Texas-based Computer Automation Inc, once a low-end minicomputer manufacturer – it pioneered the embedded board-level systems business, but latterly noted primarily for the patents it holds that are a key part of IBM Corp’s Micro Channel Architecture, is divesting its last remaining trading operations. The patents no longer generate any income because in one of its many cash crises, it sold IBM a paid-up licence to the patents for $1.6m in 1991 (CI No 1,729). It has signed a letter of intent to sell the assets of its remaining operating groups to ActionFax International Inc, based in Dallas. The assets consist of Computer Automation’s facsimile management systems and computer repair groups, and the price to be paid is 3.2m shares in ActionFax, value uncertain. ActionFax provides facsimile services to business and residential users through the use of proprietary facsimile technology. Computer Automation says that in light of the company’s cash shortages and operating losses over the past two years, access to capital markets was severely limited and sufficient resources have not been available to dedicate to the proper marketing of the company’s proprietary Q/FAX Fax Management System or to reach the sales volume necessary to achieve profitability, and is now giving shareholders the opportunity to participate in the success of the product as part of the ActionFax business. Once the assets are sold, Computer Automation’s assets will consist primarily of its stake in ActionFax and the company will have no operations.
